HealthTop story
Cedar Valley Medical Specialists closed suddenly, and several clinics are going independent
The network's money trouble ended in a sudden closure
- MayFarmers State Bank files a petition to access the network's collateral.
- Early Oct.The bank takes control of the network's assets.
- Oct. 27A judge denies the request for a temporary injunction.
- Oct. 2831 employees are laid off, per the Iowa WARN website.
- Oct. 30The network announces its closure.
- Nov. 9Cedar Valley Eye Care tentatively plans to reopen.
Sources: The Gazette, KWWL
If you're a patient of a Cedar Valley Medical Specialists doctor, call your clinic before you go. The independent network of specialty clinics closed suddenly on Oct. 30 after it could no longer pay its employees.
Court documents indicate the 26-location network owed Farmers State Bank over $15 million, and a judge denied its request to unfreeze its accounts on Oct. 27. Employees were then furloughed and told their health insurance ended, and the bank has asked the court to appoint a receiver immediately.
- Cedar Falls: Cedar Valley Eye Care, 1409 W. 1st St.
- Eye Care reopening: tentatively Mon., Nov. 9, at Cedar Falls and Waterloo
- Family Medicine: Waverly Hospital for now, Waterloo in about 2-3 months
- Laid-off workers: Iowa Workforce Development is meeting with them
Several practices are going independent. Cedar Valley Eye Care will call patients whose visits were canceled to reschedule. Cedar Valley Family Medicine plans to partner with Waverly Health System, and Ascent Integrated Specialists said its Waterloo clinic and satellites in Waverly, Hiawatha and elsewhere would reopen as an independent practice.
The closure by the numbers
- $15 million+
- owed to Farmers State Bank, per court documents
- 26
- locations in northeast Iowa
- 31
- employees laid off on Oct. 28
- $800,000+
- charged by the chief restructuring officer
Source: The Gazette
